According to a recent report from Fortune Business Insights, the global lighting market is projected to grow from $125.48 billion in 2023 to $169.44 billion by 2030. Having been around since 1835, this market has only recently transitioned from an electric- to electronic-driven market that encompasses a broad range of technologies and related products that use electronic components for their operation.
Today the lighting market is a significant sub-segment of the electronics market where LEDs are dominant. Strict energy efficiency regulations and environmental concerns have made LED adoption standard in all lighting applications since they are far more energy-efficient and versatile than traditional incandescent, arc, fluorescent, sodium vapor or other lighting methods.
The lighting market encompasses residential lighting, commercial lighting (office buildings, retail stores, hospitality), industrial lighting (warehouses, factories), and outdoor lighting (street lighting, sports arenas). It also includes specialty areas like runways and aviation in general, traffic signals, emergency lighting, automotive and transportation – really anything that lights up is an application.
Trends in lighting technologies continue to advance the market. The integration of electronic controls and IoT (Internet of Things) capabilities, for example, has led to the rise of “smart lighting” systems that integrate remote control, automation, color-temperature-changing, energy-monitoring, and other consumer-friendly features.
Substantial market growth has also been spurred by increasing urbanization, infrastructure development and retrofitting projects. With energy savings in mind, and of course rebates and incentives from utilities, many municipalities and other governmental agencies are using intelligent lighting control to save energy and cut waste.
But the dramatic growth of the electronic lighting market comes with challenges, such as initial cost pressures (especially for smart lighting systems), compatibility issues with existing infrastructure and concerns over the disposal of the electronic components in LED applications. Additionally, at the low end of the market, the reliability of low-cost replacement bulbs at big box stores has been less than expected. Outdoor fixtures that need to operate at high ambient temperatures when using these lamps will suffer as these lamps use off-brand components to optimize for cost, a race to the (price) bottom ensues in which reliability and quality are sacrificed for cost.
The lighting market has always been price-sensitive – and the pressure to create lower-cost applications while increasing energy efficiency has only accelerated. Hopefully, the decreasing prices of wideband gap (WBG) semiconductor components, which offer the benefit of higher operating temperatures, might help solve some of these challenges. Other promising solutions are the continued development of smart lighting technologies and further integration with smart home systems and IoT platforms.
In summary, the electronic lighting market is dynamic. It’s driven by technological innovation, regulatory factors, market price pressures and the increasing demand for energy-efficient, smart lighting applications. Opportunities for electronics engineers are advancements in lighting controls and sensor integration that improve energy efficiency, quality-reliability, and sustainability. In other words, finding new ways to add features and functionality to lighting applications across various global sectors.
